CHILEAN SCIENCE, TECHNOLOGY

AND INNOVATION SYSTEM

Cooperation Opportunities

Lima , November, 2005

Chilean Innovation System: A 1

Presentation; Nov 2005

CHILE. General Facts

• Area: 756.950 km2
• Population (2002):15.116.435
• Labour force (aug 05):6.322.140
• Unemployment rate (aug 05): 8,1%
• Exports 2004: US$ fob 32 billions
• GDP 2004: US$ 90 billions
• GDP growth rate : 6 % per year
• GDP p/capita 2004: US$ 6.000; 10.000 ppp
• Inflation rate 2004 : 2,4%
• Infant mortality 2002: 7,8 (0/00)
• Literacy rate 2002 : 95,8%

Chilean Innovation System: A 2

Presentation; Nov 2005
 Chilean R&D expenses

y R&D expenses evolution: % of GDP

1,20%
1,10%
1,00%
0,80% 0,70%
0,60%
0,40%
0,20%
0,00%
1990 1993 1996 1999 2002 2010
year

9R&D Expenses (2004): around US$ 540 millions

Chilean Innovation System: A 3

CONICYT ; Ministry of Economy
Presentation; Nov 2005

Most of R&D activities are funded by Chilean

Government
y STI funding and implementing entities (%; 2002)

Funding entities Implementing entities

Gov. Firms,
GF
7% Goverment
Private
9%
Firms, PF ChileanFirms Foreing firms
27% GF and PF 11%
37%
Universities Goverment
55%
0%
NPPO NPPO Universities
0% Foreing firms 3%
11% 40%
NPPO: Non Profit Private Organizations

CONICYT, Ministry
Chilean of Economy
Innovation System: A 4
Presentation; Nov 2005
 R&D expenses
International Comparison
F inla nd
y R&D expenses
J a pa n
(% GDP)
K o re a

U nite d S ta te s
OECD Economic
OECD
Survey of Chile (2005)
EU

Aus tra lia (2 0 0 0 )

C ze c h R e public

Ire la nd P riv a te

B ra zil (2 0 0 0 ) P ublic
Ne w Z e a la nd (1 9 9 9 )

Hunga ry

C H IL E (2 0 0 2 )

S lo v a k R e public

M e xic o (1 9 9 9 )

Arge ntina
Chilean Innovation System: A 5
Presentation; Nov%2005
0 1 2 3 4

Applied research is growing up...

y R&D expenses per type of research (year 2003)

Experimental
Development
9% Basic
Research
29%

Applied
Research
62%

Source: CONICYT.
Chilean Innovation System: A 6
Presentation; Nov 2005
 Number of Chilean granted patents

y Number of patents granted by Chilean Patent Office

763
703
654
800 703 607
658
700 608
555
600
500 309
400
280
300
Total
200
Foreing Patents
100
45 46 60 29 52 Chilean Patents
0
2000 2001 2002 2003 2004

DPI: Chilean Patent Office

Chilean Innovation System: A 7
Presentation; Nov 2005

38

36 New patent applications (FONDEF)

34

32

30
Nr of applications per year
28

26

24

22

20 Applications in CHILE
18
Applications in Foreign
16 Countries
14

12

10

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Chilean Innovation System: A 8

Presentation; Nov 2005
 Number of publications

y Publications per million Finland

working-age population Australia
New Zealand
United States
OECD
OECD Economic
Japan
Survey about Chile (2005)
. Ireland
Czech Republic
Hungary
Korea
Slovak Republic
Argentina
CHILE
Brazil
Mexico
Chilean Innovation System: A 9
Presentation; Nov 2005 0 500 1000 1500

Scholarships stock is growing up

y Scholarships stock, CONICYT - MIDEPLAN (1999-2004)

1200

1000

800

600

400

200

0
1999 2000 2001 2002 2003 2004

TOTAL SCHOLARSHIPS CONICYT-MIDEPLAN

Scholarships Conicyt
Scholarships Mideplan
Chilean
Sources: Innovation
CONICYT; System: A
MIDEPLAN 10
Presentation; Nov 2005
 Qualified people in comparison to other countries

y Researchers per 1000

Finland
workers
Japan
United States (1999)
New Zealand (1999)

OECD Economic Australia (2000)

Survey of Chile (2005) OECD (2000)

Korea
EU (2000)
Ireland (2000)
Slovak Republic
Hungary
Argentina
CHILE (2002)
Mexico (1999)

%0 5 10 15
Chilean Innovation System: A 11
Presentation; Nov 2005 Business enterprise researchers

WEF indexes

y World Economic Forum

ƒ Chilean evolution of Growth Competitive Index (GCI) and

Technology Factors Index (TI):

45 42
40
35 33 32
31
30 27 28
24
25 22
Ranking

20
15
10
5
0
2001 2002 2003 2004

GCIA TI
Chilean Innovation System: 12
Presentation; Nov 2005 WEF (2004)
 2005 WEF indexes and comments
y Chile ranks 23 in the world
y Distinctive Chilean aspects according to the WEF
9 Highly competent macroeconomics management: 1st place in the world in
management of macroeconomics
9 Institutional environment very transparent, open and predictable.
9 Public Institutions very similar in transparency and efficiency to those of EU. Only
8 out 25 EU countries are better of in this respect. .
9 Maturity of democracy: in spite of Chilean presidential elections in next
December, there is no impact on economics
y Some challenges to overcome (ranking 59 or worse)
9 Women employment in private sector
9 Quality of science and math teaching and learning
9 Practices of hiring and firing
9 Quality of Education System
9 Nature of competitive advantage of firms (most in natural resources and
technology transfer or absorption rather than technology development)
9 Focus in value chain (clusters)

Chilean Innovation System: A 13

Presentation; Nov 2005

World Bank Knowlegde Economy Index

Chilean
WorldInnovation
Bank 2004. System: A 14
Presentation; Nov 2005
 Chilean STI System : Main actors and roles
• Firms: Innovation mainly through tech transfer and adoption. Just a few have
a R&D&I dpt. A quantity have been participating in R&D&I projects and
consortia (with Chilean and foreign firms) funded in part by Gov (CONICYT,
FONDEF) since 1992.
• Public and private Universities: Basic research (mainly in public universities)
and leaders formation: U. CHILE, PUC, U. CONCEPCION, PUCV, UFSTM, U.
ANDRES BELLO. Almost every Chilean researcher belongs to an university. A
quantity have been participating in R&D&I projects and consortia (with
Chilean and foreign universities) funded in part by Gov since 1992
• Other scientific entities (Millenium, FONDAP, Regional Centers): Basic
Research funded by Central Gov (CONICYT) and regional Govs
• Private and public and private tech institutes: Transfer and adoption of
technologies and Innovation: FUNDACION CHILE. Research and innovation:
INIA, INFOR, CIMM, IM2, BIOSIGMA S.A. Research for regulation and public
purposes (forestry, fisheries, aquaculture, agriculture, mining, health, and so
on): INFOR, IFOP, CIMM, CIREN
• Government: Macroeconomic framework, policies of R&D&I, R&D&I Gov
funding entities, public universities and institutes funding, R&D&I programs and
projects funding through contests and bids (CONICYT, FONDEF, CORFO, FIA, FIP
and others).
• New National Council Innovation for Competitiveness: policy making,
strategy, coordination, allocation of funds to present agencies (CONICYT,
CORFO, others) Chilean Innovation System: A 15
Presentation; Nov 2005

Chilean STI System: Some important

relationships
• Technology transfer, adoption or absorption in Chile
– Gov have provided a macroeconomic equilibrium, an
open economy, a transparent and stable institutional
framework, a promotion system for exports and some funds
for STI.
– Chilean exports have been increasing at high rates since
1985. (In 2004 exports represented around 36% of GDP)
– Firms have exported many new products based on:
1) Entrepreneurs with a deep insight of global markets and
business opportunities,
2) Qualified executives, engineers and technicians formed in
Chilean universities and, all of them dependable people,
3) Strategic alliances and partnerships with foreign firms that have
supplied money, know how and technology,
4) Technology transfer, adoption or absorption with Chilean
researchers and engineers assistance
– Universities and tech institutes have supplied, high qualified
people, facilities to prove and adapt technologies,
technical assistance and training
Chilean Innovation System: A 16
Presentation; Nov 2005
 Chilean STI System : Some important
relationships
• Technology development
– In some sectors Chile have been reaching an important
share in global markets. For instance: aquaculture (salmon),
fruitculture, vitiviniculture, timber, cellulose and paper, and
copper mining
– There are some Chileans social, economic and infrastructure
problems that require unique effective solutions
– No longer technology transfer or adoption alone supplies an
effective solution to compete in global markets or solve
Chilean big problems; technology dev is required
– Some areas and disciplines that are being developed are:
biotech, ICT, cleaner technologies, pre and postcrops
technologies, mining and metallurgical technologies,
aquaculture technologies, forestry technologies, genomics,
bioinformatics and proteomics, molecular biology, applied
math modeling, geology, and so on
– In house R&D is very difficult for Chilean firms. Almost anyone
is a small or medium size firm according to global standards
Chilean Innovation System: A 17
Presentation; Nov 2005

Chilean STI System : Some important

relationships
• Technology development (cont.)

– A Chilean solution: Since 1992 Gov funds part of R&D&I

projects presented and implemented by a partnership
among Chilean universities and firms. Foreign firms and
universities may participate supplying money, resources,
know-how and complementary technologies. They obtain
a share in project results. FONDEF case.

– Since 2002 some partnerships are evolved to legal tech

consortia for long range R&D&I programs. Gov funds part
of programs for the first 3 to 5 years. Consortia fund al least
30% to 50% of programs. After 3 or 5 years Consortia fund
100%. 1st case: Biomining (genomics, bioinformatics,
proteomics), another case: CATIC Valparaiso (ICT-
traceability)

Chilean Innovation System: A 18

Presentation; Nov 2005
 Chilean STI System : Some important
relationships
• Technology development (cont.)
– Recently Gov have funded 9 new tech consortia (Gov USD
32 millions, Firms and universities: USD 24 millions and in kind
resources). They are:
1. Aeronautics; new unmanned airplanes
2. Forestry: Genomics for improving timber production
3. Milk: R&D in a quantity of areas for improving milk chain
production
4. Health, Applied Biomedecine : new products for colorectal
and pancreas cancer diagnosis and treatment
5. Biochemistry: new pharmaceutic and nutraceutic products
based on materials such as phytosterols, policosanols,
estilbens
6. Biotechnology: new or improved fruit varieties
7. Biotechnology: new or improved vineyard and nectarin
varieties
8. Wine: new effective and cleaner technologies for Chilean wine
differentiation, productivity and quality
9. Wine: New patentable products for improving competitiveness
of wine
Chilean Innovation System: A 19
Presentation; Nov 2005

Main Chilean clusters and technologies

• Chilean clusters were not created by design; they are results of market and open Chilean
economy.

• Fruits for export (grapes, nectarins, apples, avocados)

• Location: Central Regions (4th to 7th Regions)
• Exports 2004: USD 2880 millions (FOB, Central Bank)
(Chilean GDP 2004: USD 90 billions; total exports 2004: USD 32 billions; Central Bank )
• Fruit producers and exporters associations
• Package handling suppliers; Fertilizer and pesticide producers and services
suppliers; Services suppliers of cleaner, organic and integrated production, pre
and postcrop processes, farm weather forecasts, logistics, precision agriculture
and so on
• Some public and private STI institutions: INIA, FUNDACION CHILE, CIREN, FDF,
University Centres in fruitculture (U. Talca, U. Chile, PUC Chile, PUC Valpo, others)
• R&D&I projects and consortia (firms&universities):
• New or improved varieties through biotech, genomics, bioinformatics and proteomics
• New systems, products, services and processes based on ICT and mathematical
modeling Chilean Innovation System: A 20
• New systems, products, services and processes
Presentation; Nov 2005 based on biology, biochemestry,
 Main Chilean clusters and technologies
• Chilean wine
• Location: Central Regions (4th to 8th Regions)
• Exports 2004: USD 843 millions (FOB, Central Bank)
(Chilean GDP 2004: USD 90 billions; total exports 2004: USD 32 billions; Central Bank )
• Wine producers and exporters associations
• Package handling suppliers; Fertilizer and pesticide producers and services
suppliers; Services suppliers of cleaner, organic and integrated production, pre
and postcrop processes, farm weather forecasts, logistics, precision agriculture
and so on
• Some private and public STI institutions: University Centres (PUC Chile, U. Talca),
Universities (U. Chile, U. Concepcion, U. Talca, PUC Chile, others)
• R&D&I projects and consortia (firms&universities):
• New or improved varieties through biotech, genomics, bioinformatics and proteomics
• New systems, products, services and processes based on ICT and mathematical
modeling
• New systems, products, services and processes based on biology, biochemestry,
organic chemestry, logistics and so on
Chilean Innovation System: A 21
Presentation; Nov 2005

Main Chilean clusters and technologies

• Aquaculture (salmons,shells and others )
• Locations: Mainly 10th Region (salmons, trouts,shells, other species) and 4th Region (shells)
• Exports 2004: USD 1672 million (FOB, Central Bank)
• (Chilean GDP 2004: USD 90 billions; total exports 2004: USD 32 billions; Central Bank )
• Salmon producers association, other producers association
• Food (for salmons and other species) industry, ship building firms, salmon cages and net
suppliers and net repair services, package handling suppliers
• Earth observation aquaculture facilities; Logistics, cold chain, traceability, cleaner
production, weather forecasts and so on services
• Private and public STI Institutions: INTESAL: Private Technology Institute of Salmon,
FUNDACION CHILE, UC Coquimbo, U. Los Lagos, PUC Valpo, U. Antofagasta, others)
• R&D&I projects and consortia (firms&universities):
• New cultivated marine species with great commercial potential based on biology, physiology and
anatomy of species and on genomics, (diversification)
• New or improved processes for salmon and other species growing based on management of
temperature and light,
• New or improved products, services and processes for nutrition, logistic, feeding, weather and other
variables forecasts, packaging, cleaning of bottom of cages based on biotechnology, logistics, ICT
• New or improved products made
Chilean of salmon
Innovation andAother species
System: 22
Presentation; Nov 2005
 Main Chilean clusters and technologies

• Forestry (timber,wood, wood products, cellulose and paper

production)
• Locations: 7th Region to 12th Region
• Exports 2004: USD 3363 million
(Chilean GDP 2004: USD 90 billions; total exports 2004: USD 32 billions; Central Bank )
• BIOFOREST: Private Biotechnology Forestry Institute
• Logistic services
• Manufacturers of wood or paper products
• Suppliers of services and products for forestry industry
• R&D&I projects and consortia for:
• New (in Chile) or improved tree varieties, products and processes for timber, cellulose
and paper production through biotech, genomics, mathematical modeling, ICT
• New or improved logistic services and processes for nutrition, logistic, feeding, weather
and other variables forecasts, packaging, cleaning of bottom of cages
• New or improved products made of salmon and other species
Chilean Innovation System: A 23
Presentation; Nov 2005

More information
• www.conicyt.cl
• www.corfo.cl

• jyutronic@conicyt.cl

Chilean Innovation System: A 24

Presentation; Nov 2005